After nearly a decade of promising fully autonomous cars, EV maker Tesla (TSLA) finally expects to carry out robotaxi rides in 2025. However, the vehicles will not be fully autonomous, as human teleoperators will monitor them remotely for safety. Deutsche Bank noted that Tesla intends to start with a company-owned fleet and offer rides in existing vehicles in California and Texas, eventually scaling based on demand.
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This reliance on teleoperators signals Tesla’s technology isn’t yet ready for fully autonomous Level 4 driving, a fact industry experts see as a weakness. Eran Ofir, who is the CEO of autonomous driving software producer Imagry, stated that teleoperator-based systems can’t be classified as autonomous, which highlights Tesla’s struggles compared to its rivals, according to TheStreet.
Meanwhile, Waymo continues to lead the robotaxi race, as its self-driving technology has seen real-world success. In fact, a 2024 study demonstrated that Waymo’s Automated Driving System significantly reduces crashes and injuries, which proves it has an edge in safety and reliability. Tesla’s admission of needing human oversight raises doubts about whether it can truly catch up to more advanced competitors in the self-driving space.
Is Tesla Stock a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 12 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. After an 87% rally in its share price over the past year, the average Tesla price target of $287.10 per share implies 39.1% downside risk.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
